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Dependability Assessment of Supplier Performance based on the Fuzzy Sets Theory

Author

Listed:
  • Živan Živković

    (University of Belgrade, Technical Faculty in Bor)

  • Djordje Nikolić

    (University of Belgrade, Technical Faculty in Bor)

  • Ivan Mihajlović

    (University of Belgrade, Technical Faculty in Bor)

  • Predrag Djordjević

    (University of Belgrade, Technical Faculty in Bor)

Abstract

In the literature, considerable attention has been given to the role of suppliers, thus companies have been increasingly considering better supplier selection approaches in order to attain the competitive advantage in the demanding markets. The aim of this study is to provide an effective tool for decision makers (DMs) to help them with evaluation and prioritization of current suppliers. Moreover, the supplier prioritization is inherently multi- criteria decision-making problem (MCDM), with involved high degree of fuzziness. Hence, this paper introduces fuzzy decision-making model where dependability assessment of the suppliers could be done based on the fuzzy set theory and max-min composition. Furthermore, in order to determine supplier dependability, the typical influence indicators: Production facilities and capacities (PFC), Delivery (D) and Service (S), were analysed in an illustrative example, where proposed model used triangular fuzzy numbers (TFN) to establish linguistic description of these three indicators. At the practical level, the results and findings of this paper provide decision makers with a complete picture of those suppliers that have the highest dependability performance in their supplier network.

Suggested Citation

  • Živan Živković & Djordje Nikolić & Ivan Mihajlović & Predrag Djordjević, 2016. "Dependability Assessment of Supplier Performance based on the Fuzzy Sets Theory," Proceedings- 11th International Conference on Mangement, Enterprise and Benchmarking (MEB 2016),, Óbuda University, Keleti Faculty of Business and Management.
    • Handle: RePEc:pkk:meb016:43-56
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    References listed on IDEAS

    as
    1. Wu, Desheng & Olson, David L., 2008. "Supply chain risk, simulation, and vendor selection," International Journal of Production Economics, Elsevier, vol. 114(2), pages 646-655, August.
    2. Weber, Charles A. & Current, John R. & Benton, W. C., 1991. "Vendor selection criteria and methods," European Journal of Operational Research, Elsevier, vol. 50(1), pages 2-18, January.
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